Simplified GHO Simulation Model: Creating Community-Friendly Education and Governance Tools

Background Overview

As a leader in the decentralized finance sector, AAVE has always been at the forefront of innovation. The launch of its native stablecoin GHO is a key strategy to drive large-scale adoption of the AAVE ecosystem. However, as a newcomer, GHO still has enormous growth potential. How to maximize innovation while rapidly and comprehensively optimizing design solutions, identifying risks, and efficiently coordinating the community to make informed decisions is crucial for both AAVE and GHO.

Project Introduction

This project aims to use the no-code visual modeling tool HoloBit to build an easy-to-understand and easy-to-use verifiable GHO off-chain basic model, bringing simulation technology to the community and the public. We will construct key components such as users, convenience providers, GHO, markets, and governance, complete the model building through simple operations, and conduct rigorous validity checks to ensure a high-fidelity restoration of the GHO protocol ecosystem.

The main functions of this model include:

• Provide insights: analyze key mechanisms and parameters, revealing the main factors that influence system behavior.
• Optimized Design: Provide an experimental platform to validate various design schemes and improve innovation efficiency
• Anticipate Risks: Test different scenarios to identify potential vulnerabilities and risk points in advance.
• Support for Decision-Making: Provide valuable references for decision-makers

Importantly, the model is highly transparent and supports sharing, allowing non-technical users to easily participate in innovation. It is expected to become an educational, governance, and promotional auxiliary tool for the GHO protocol, providing new ideas for community-based innovation and security solutions.

Project Value

1. Rapid trial and error, efficient iteration in protocol design

The GHO foundational model provides a unique experimental space where users can innovate boldly and freely. Whether exploring better parameter combinations or experimenting with entirely new mechanisms, rapid prototyping and iterative optimization can be conducted based on this friendly and flexible model. This not only shortens the time from concept to implementation but also significantly reduces trial and error costs, helping AAVE and GHO maintain a leading level of innovation.

2. Comprehensive Screening of Economic Security Risk Points

We recommend adding an off-chain simulation phase before smart contract development. By using a validated off-chain model, it is possible to preemptively rehearse the "behavioral space" of the system under the new design scheme, quickly and comprehensively scan for potential risk points, continuously optimize the design, and save a significant amount of time and resources for subsequent on-chain simulations. The coordinated collaboration between off-chain and on-chain simulations may be a more economical security solution.

3. Interactive Dynamic Education and Promotion Tools

The model is user-friendly enough that even non-technical users can easily understand and operate it. It can serve as an interactive dynamic educational tool for GHO, allowing users to understand mechanism design and risks in an intuitive and visual way. Users can also freely adjust parameters or even add or reduce mechanisms to better understand the impact of different decisions. The rapid updates of the model also ensure the timeliness of the educational content.

4. Enhance the degree of decentralization and responsiveness of governance

The usability and scalability of the model allow users from various backgrounds to participate in the governance of the AAVE and GHO ecosystems. Anyone can experiment based on the model, deducing the consequences and risks under various scenarios, innovatively optimizing mechanisms and parameters, and sharing findings within the community. This can not only significantly enhance the responsiveness of governance but also help maintain a high level of participation and decision-making quality, stimulating the creativity of the community.

Project Innovation Points

• Not only reduces risk but also stimulates more innovation.
• Display mechanisms and risks transparently in real time
• Designed for the community, everyone can use it easily.
• Unprecedented governance, education, and promotion tools

Project Objectives

Short-term goals:

• Efficiently complete the basic model building of GHO, laying a solid foundation for community design optimization, risk screening, and other tasks.
• Attempt to provide new educational, governance, and promotion ideas to ensure the public can understand and use the model.

Long-term goal:

• Helping to build a more robust GHO ecosystem
• Explore the broader application of off-chain models in the AAVE ecosystem.

Research Feasibility

Although the model is based on assumptions, it does not affect its practicality in solving specific problems. Successful cases from multiple risk management teams have also demonstrated the feasibility of protocol simulation. Our team possesses interdisciplinary expertise and extensive experience, having successfully used HoloBit to build an off-chain model of the Terra/Luna protocol and replicate its collapse mechanism, proving the team's research capabilities and the applicability of the tools.

Research Route

The technical roadmap includes steps such as GHO mechanism research, model design and development, effectiveness validation, and community education. We have initiated preliminary research and identified the key sectors and interaction processes that the model will cover.

Conclusion

We hope to introduce the off-chain GHO initial prototype, not only to collaboratively safeguard the economic security of the AAVE and GHO ecosystem, but more importantly to incentivize broader community participation and innovation. We believe this project will effectively enhance the public's awareness, trust, and acceptance of the AAVE and GHO systems, while strengthening the community's governance and innovation capabilities. We look forward to collaborating with AAVE to jointly open a new chapter in decentralized finance.